Auto Finance

KBB: Transaction Prices Rise Nearly 3% YOY in September

October 3, 2016
• by Staff

IRVINE, Calif. — U.S. consumers paid, on average, $34,372 for a new light vehicle in September, up 2.5%, or $823, from a year ago but down 0.2%, or $82, from August, Kelley Blue Book reported this week.

Nearly every brand realized year-over-year gains in their average transaction price in September compared to a year ago. Nissan North America — which includes Nissan and Infiniti — recorded the highest increase, with its average transaction price rising 5.6% from a year ago. The only brand to record a decline compared to a year ago was Volkswagen, with its average transaction price falling 3.4%.

By vehicle segment, mid-size pickup trucks showed the biggest increase in transaction price, rising 5.7% from a year ago to $32,350. Showing the biggest decrease was electric vehicles, with their average transaction price falling 5.4% from a year ago to $40,480.

“Much of the automotive industry’s focus recently has been on rising incentives and very little sales growth, however, average transaction prices continue to rise across the industry, climbing nearly 3% in September 2016 from the previous year,” said Tim Fleming, analyst for Kelley Blue Book. “This trend has been bolstered by the shift in consumer preference from cars to crossovers and SUVs. Mid-size trucks also stand out as a segment on the rise, with sales up double digits and transaction prices rising nearly 6%, on average, to $32,350.”

Wantalease.com analysts report relatively flat lease pricing across most major brands, but increases on several popular models should give dealers enhanced latitude for holiday weekend lease discounts.